Accra: The Ghana Chamber of Mines has reiterated its commitment to collaborating with the government to explore solutions that balance industry sustainability with revenue needs.
According to Ghana News Agency, the Chamber is responding to ongoing discussions about key issues in the mining sector, particularly the increase in the Growth and Sustainability Levy (GSL) and concerns regarding the country's natural resource management.
Mr. Ahmed Nantogmah, Director External Relations of the Chamber, stated that while the Chamber acknowledged the renewed public interest in optimizing Ghana's mineral wealth, the discussions must be devoid of misconceptions. He noted that the proposed increase in the GSL from 1 percent to 3 percent had sparked debate, with proponents arguing that Ghana was yet to fully capture economic rent from its natural resources. However, the Chamber emphasized that mineral rent, the residual value after covering extraction costs and investor returns, has historically averaged below 3 percent of GDP.
He further explained that despite the surge in gold prices in recent years, not all mining companies enjoyed proportional profit increases due to varying operational costs and investment needs. Additionally, the levy would impact manganese and bauxite producers, even though these minerals have not experienced the same price hikes as gold, creating an uneven financial burden.
Despite these concerns, the Chamber reaffirmed its commitment to collaborating with the Ministries of Lands and Natural Resources and Finance for a sustainable solution. Efforts are ongoing to enhance local participation in the sector, including initiatives with the Ghana Stock Exchange and the Minerals Commission to encourage the listing of mining firms.
Between 2020 and 2023, Chamber members spent an annual average of $2.87 billion on local goods and services while contributing $1.19 billion in taxes and $32 million in corporate social investments. Furthermore, about 75 percent of mineral revenues were repatriated through Ghanaian financial institutions, countering claims that investors retain a disproportionate share offshore.
The Chamber also renewed its call for a legislative framework similar to the Petroleum Revenue Management Act to ensure greater transparency and accountability in mining revenue utilization. Mr. Nantogmah expressed the Chamber's support for increased funding for the Ghana Geological Survey Authority (GSA) to enhance resource assessment and position Ghana for independent mineral development or strategic partnerships.
It also commended recent government efforts to curb illegal mining and protect the country's forests and water bodies. 'The Ghana Chamber of Mines reaffirmed its dedication to working with all stakeholders to maximize the country's mineral resources for the collective benefit of citizens', it added.
